Cape Cod Times September 25th, 2011

On Friday morning, did you hear that noise coming from the Falmouth Technology Park in the shadows of the controversial Wind I turbine?

No? That’s because the ribbon-cutting ceremony involving lawmakers, community and business leaders was indoors. What they were celebrating, however, was on the roof of the Marine Biological Laboratory’s (MBL) research greenhouse, which shares the building with the Northeast Fisheries Science Center’s Observer Training Center.

They were there to bear witness to the single largest solar installation in Falmouth — 510 solar panels, which are expected to reduce their annual electricity bill by 46 percent!

Noticeably absent was any hint of partisan acrimony. Instead, there were scientists, business people, our Democratic state Senate President Therese Murray and Republican state Rep. David Vieira — all under one solar-paneled roof. The consensus, both scientific and un-scientific, seemed to be: this is a win-win-win for energy conservation, a smaller carbon footprint, and the local economy.

The first two “wins” are obvious. Not so obvious was the fact that the solar panels were made in America (not China) and installed by the Dennis-based solar start-up My Generation Energy. And thanks to projects like the one unveiled at the MBL facility business is a-boomin’ for My Generation Energy founder and owner, Luke Hinkle.

But something else is also far from clear; namely the place of solar technology in the emerging “green” economy — a market in which China is now kicking our collective butts. Everyone agreed that solar energy is more expensive in the short-term than our heavily subsidized fossil-fuel economy, but that doesn’t mean solar shouldn’t be in the mix.

MBL President Gary Borisy likened experimental solar energy projects to baseball. “If you hit .300 in baseball, you’re an all-star. But you can’t expect to get a hit every time you’re at the plate.”

When I met with Hinkle to talk energy economics over a cup of coffee after the ceremony, he explained how he went from working in corporate America in the semiconductor industry to teaching physics and math at Falmouth High School for five years before getting the idea to open his own solar installation business.

Even though he admits to not reading newspapers and spoke of his aversion to political bickering, he does know how to read the writing on the wall. In the summer of 2008, Gov. Deval Patrick’s “Green Communities Act” was passed, which not only requires utility companies in the state to buy a portion of their power from renewable energy sources, it also established a framework that allows businesses such as Hinkle’s to get off the ground.

But the decisive realization came when Hinkle watched Obama and McCain debate in the run-up to the 2008 presidential election. On issue after issue, both candidates offered contrasting views. But when the moderator asked about renewable energy and solar panels in particular, they both had a similar laudatory response.

“It was a nonmoment for everyone else, I’m sure. But for me it was an ‘aha!’ moment,” Hinkle said. “It signaled there wasn’t a significant political risk in this anymore.”

Back in the 1980s, there was a clear political division. Democrats were for solar power and Republicans were on the lucrative side of oil and coal. Today, even with the GOP using the Solyndra and Evergreen bankruptcies to muddy the waters, there’s bipartisan support for solar energy.

Well, maybe not everyone. We still have lobbyists for Big Oil. There are also the global warming-deniers and “junk science” watchdogs who wouldn’t know the difference between Isaac Newton and Fig Newtons if they fell out of a tree onto their hard heads.

Hinkle talked about the complex challenges in the solar energy biz and the absurdity of the ideological pollution put out there by opponents — that somehow government subsidies for national infrastructure is unique to renewable energy.

With only two employees a year ago, Hinkle’s company now employs eight.

And with an eye toward expansion, he’s been lobbying lawmakers to pass House Bill 1776, which calls for the “net-metering” cap in the Green Communities Act to be lifted from 3 percent to 6 percent. In oversimplified English, that means figuring out how to allow renewable energy providers to sell more green juice to the grid.

He also envisions “community solar gardens,” which he sees as a solution for those who want solar power but don’t like the way solar panels look atop their home or business. And maybe it’s because he’s a physicist that grounds Hinkle in reality.

For better or worse, he said, feel-good environmentalism doesn’t carry much weight in convincing consumers to go green. It’s that other green that does the trick. “Would I be in this business if I wasn’t making money? Probably not,” he said.

We’ve come a long way since President Reagan removed the solar panels that his predecessor Jimmy Carter installed on the White House. But there’s still a long way to go. And when it comes to renewable energy, Cape Wind notwithstanding, it’s better to be seen and not heard.

Email Sean Gonsalves at sgonsalves@capecodonline.com

Photo by Mark Zelinski Photography

steehan@capecodonline.com

September 24, 2011

FALMOUTH — From a bird’s-eye view, the roof of the Marine Biological Laboratory building at Technology Park looks like it’s covered by hundreds of flat-screen TVs.

Inside on Friday, dozens of people dodged the ominous-looking clouds as they celebrated the completion of the 510-panel solar array at the research facility.

“Yesterday, which was grayer than today, (the solar array) produced one-third peak power,” said Gary G. Borisy, MBL’s president and director.

Officials from MBL and MyGenerationEnergy — the company that installed the 120-kilowatt array — as well as Senate President Therese Murray and other government representatives were there to cut the ribbon on what is currently the largest solar array in Falmouth.

MBL expects the panels will provide more than 46 percent of the Technology Park building’s electricity annually. The array was pursued, in part, so the environment-focused organization could practice what it preaches, Borisy said.

“It’s part of an overall MBL effort,” he said.

Plans for the panels began near the beginning of 2010, said Luke Hinkle, chief executive officer of MyGenerationEnergy. Construction began this past spring, and in July the solar array began producing enough electricity to power 15 houses.

“Anytime we can make local green energy, we can avoid having to import it,” Hinkle told the audience before joking they were technically importing energy from 93 million miles away. The panels, he said, would avoid burning 200 tons of coal in a year.

With the embattled “Wind 1″ turbine spinning at the nearby Falmouth wastewater treatment facility, Murray listed some advantages solar power has over other forms of renewable energy.

“It’s not intrusive; it doesn’t make noise,” she said. “Whether it rains or shines, whether the wind is blowing or not, it works.”

Falmouth Chamber of Commerce president Jay Zavala praised the project for creating what MBL officials said were more than a dozen professional and construction jobs.

“The impact is exponential,” Zavala said. “Not only does it bring highly educated (professionals)”» but it creates jobs for others as well in the installation and implementation.”

However, Rep. David Vieira, R-Falmouth, said that while he believes solar is “a piece of the pie,” he is wary of dedicating too many resources to any one renewable source after Evergreen Solar Inc., a Marlboro company that received millions in state tax incentives and grants, filed for bankruptcy last month.

“As we move forward, we have to be careful of how we spend our public tax dollars,” Vieira said.

Photo by Mark Zelinski Photography

What is an SREC? And how are they generated?

A Solar Renewable Energy Certificate (SREC) is a certificate created to promote the growth of solar energy. As your My Generation Energy system generates electricity, it also creates these corresponding virtual certificates that are worth real money when sold on an open market. SRECs are generated for every megawatt hour a solar installation system produces. A typical home installation of 5 kW capacity produces about 6 SRECs per year. For example:

1 SREC = 1,000 kWh of solar electricity = 1 MWh of solar electricity

5 kW solar capacity generates ~ 6 MWh = 6 SRECs per year

Simply, as a solar energy system owner, you are not only able to use all of the clean energy you produce; but as an additional bonus, you are financially rewarded for each SREC generated. You are being paid just because you’re making solar electricity.

Who buys SRECs?

For Massachusetts, regulations have been implemented which require electricity suppliers–the companies selling “regular” electricity–to purchase a certain number of SRECs per year. These requisites, called Renewable Portfolio Standards (RPS), also penalize suppliers for not meeting the minimum yearly quota. Currently, this fee is $600 per SREC. This penalty, in effect, sets a ceiling price for SRECs. For comparison, this is more than three times the retail price of the electricity itself!

How do I sell SRECs?

With little work involved on the part of the seller and with the help of My Generation Energy, solar electricity generators can efficiently sell their SRECs to buyers on an open market called SRECTrade. My Generation Energy provides a hands-free enrollment service, eliminating any work on the seller’s end. We provide full service in:

 Submitting all state forms to certify your system.

 Setting up an SREC tracking account through the state.

 Creating and managing your SREC account through SRECTrade.

Once choosing to enroll with this convenient option, you the seller simply set your minimum price and wait for your check.

How does the auction work?

SRECTrade hosts auctions on a quarterly basis, which allow buyers and sellers to interact seamlessly. This public marketplace was created as a solution to manage and sell SRECs; it also acts as an incentive to promote solar energy. This intermediary agent differs from third-party brokers, because it allows sellers more control over their certificates as well as provides clients with current market information including prices and markups which are otherwise typically undisclosed.

How soon can I begin selling SRECs and when will I see the money?

As a seller, you simply submit your solar meter readings at the beginning of each month and wait for a sale. You can begin selling your SRECs as early as 6 months after the date of interconnection. After the initial 6 month waiting period, there is a delay from the end of each quarter before SRECs made in that quarter are available to be sold on the market (Refer to Figure 1. below). Upon an auction closing, buyers’ payments are collected, and sellers’ payments are distributed. As a new system owner for 2011, you will generate SRECs for 10 years thereafter; My Generation Energy can help make this a hassle-free transaction.

Figure 1. An example timeline for generating and selling SRECs.

How much are Massachusetts SRECs worth?

As all markets are driven by the forces of supply and demand, so is the SREC Program. In this case, the number of solar installations producing SRECs represent the supply; and the state requirements on the electricity suppliers set the demand. As this is a regulated market, the Massachusetts Department of Energy Resources (DOER) makes on-going adjustments to the program to drive the demand and keep the market hungering for more supply. In Massachusetts, the current penalty is at $600, which sets the ceiling price; in accordance, a floor price has been implemented at $300. Essentially, in any given auction, an SREC is sold at a price of between $300 and $600 (a range which isn’t expected to change). In the most recent auction, the clearing price was $500. For 2011, the state has set the requirement on suppliers to purchase approximately 63,000 SRECs. The installed solar capacity needed to produce those SRECs does not exist yet. So it is very likely that SRECs will continue to be in high demand and short supply–a “hot commodity” scenario for quite some time.

By Desiree Moyer

Original Full Length, Cape Women Online Article

Solar energy seems like an easy, environmentally friendly solution for our energy needs – especially on sunny Cape Cod. But ideal sites for harvesting solar energy are rarely owned by businesses able to afford the upfront cost involved with installing a large photovoltaic array.

On the other hand, there are private financial resources looking for opportunities to fund renewable energy. And the new Solar Renewable Energy Certificates (SRECs) make it financially attractive for everyone involved.

Unutility Electric was formed to solve this conundrum. Unutility Electric, LLC is a women-owned company with a unique business model. We develop and own photovoltaic arrays atop businesses on Cape Cod.

Green Electricity

The solar arrays owned by Unutility Electric produce green electricity, which is sold at a discount to the businesses at the sites. Without this model, the businesses would be purchasing all of their electric power from the utility company.

In the United States, our standard electricity is currently generated from a mixture of 48.2% coal, 21.4% natural gas, 19.6 % nuclear, 6% hydro, and 1.1% petroleum. Biomass, solar, and wind make up less than 3% of the current generation. (This is according to the U.S. Energy Information Administration, Form EIA-923, “Power Plant Operations Report.”)

Among the renewable sources, hydroelectric power dominates. While hydro is renewable, it is not necessarily environmentally friendly. There is no hydro-electric power generation on Cape Cod, although New England does have some small hydro generators. The U.S. “imports” hydro-electric power from Canada, but it’s unlikely that significant increases in domestic hydro generation will be developed.

Personal Investment

As an avid environmentalist, I wanted to, as the old saying goes, “put my money where my mouth is.” I made a serious commitment, but it was a calculated investment. This endeavor has worked well for me both emotionally and financially. As an owner of solar electric generation, I take advantage of tax credits and depreciation while enjoying a predictable cash flow year after year.

Why solar? Why now?

The Green Communities Act, passed in 2008, and its subsequent regulations enacted in 2009, revolutionized renewable energy in Massachusetts. These policies provide the means for innovative business models for renewable energy development. The financial incentives are particularly compelling for solar.

While all renewable energy projects enjoy generous tax avoidance and electricity savings, solar electric systems participate in a unique program. These systems create valuable SRECs. The certificates are “minted” as the system produces electricity; the more electricity it makes, the more certificates are awarded.

The certificates are then sold in a regulated market. Currently, certificates are sold for more than three times the retail value of the electricity itself. (See side-bar for more details on this remarkable program.) The tax advantages and ongoing revenue from electricity and SREC sales make owning solar projects a responsible financial move.

Woman Owned

Between Katharine Reynolds and myself, we own over 50% of the original Unutility Electric, LLC. The first Unutility Electric project is a 381-panel array atop the Orleans Marketplace in Orleans, which went online in March 2010.

Two other, even larger, projects have been recently completed at Anchor and Flagship Self Storage facilities in Mashpee. Each has strong ownership shares by women and each has significant green energy production.

These large solar arrays would not have been accomplished without the commitment and support of visionary women of Cape Cod. The Unutility Electric model for implementing solar delivers on many levels. It meets the needs of building owners wishing to make their operations more green, it provides the Cape with more green jobs, it keeps our energy dollars close to home, and it improves the air quality for all on Cape Cod.

We are thrilled with what we have accomplished so far. And we’ve only just begun.

Sidebar:

Solar Renewable Energy Certificates (SRECs) are new to Massachusetts for 2010, but have been successful in other states, such as New Jersey, for the past two years. The Massachusetts Department of Energy Resources (DOER) developed and oversees the program here.

The idea behind the program is to not use tax dollars to drive the development of solar, rather to force the traditional electric power producers to support the effort.

Here’s how it works: the electric power suppliers must purchase a quota of these certificates or pay a penalty. If they sell electricity in Massachusetts, they must buy a certain number of these SRECs.

On the other side, solar projects that qualify for the program create the certificates as they generate their renewable solar electricity (one certificate is awarded for every 1,000 kilowatt hours).

How do the solar folks sell their certificates to the power companies? The trading of the certificates is handled by a variety of brokers and public auctions. Currently, the certificates are selling for between $400 and $500. Remarkably, this revenue is worth about three times the value of the electricity itself and will continue for 10 years.

Solar owners are assured of a viable market for these certificates; the DOER has control over the quotas, penalty prices, and minimum price and is committed to achieve a 30% annual growth of solar installations. The SREC program provides the owners of new solar developments with a significant and predictable cash flow for years to come.

Author Bio

Desiree Moyer is an Environmental Engineer currently working for the Environmental Protection Agency. She oversees the munitions investigation and clean up at the Massachusetts Military Reservation on Cape Cod. Desiree is an avid kiteboarder and surfer and is also one of the founding Team Riders of the Cape Cod Wahines (www.capecodwahines.org). The Cape Cod Wahines is a grassroots organization dedicated to getting women and girls into wind, wave, and kite surfing. Desiree currently resides on Cape Cod.

Click Here for more details on the Marine Biological Laboratory Solar Energy Project 2011

The combined Unutility Electric solar power, 322 kW, installed in Mashpee now is the equivalent of powering 70 large residences.

This system is yet another example of local businesses and individuals coming together to solve our energy and environmental challenges. Unutility Electric is a model for progress in solar energy.

]]> http://www.unutilityelectric.com/2010/12/the-solar-power-is-on-at-flagship-self-storage-in-mashpee-ma-cape-cod/feed/ 1 http://www.unutilityelectric.com/2010/10/the-solar-power-is-on-at-anchor-self-storage-mashpee-ma-cape-cod/ http://www.unutilityelectric.com/2010/10/the-solar-power-is-on-at-anchor-self-storage-mashpee-ma-cape-cod/#comments Sun, 24 Oct 2010 13:53:04 +0000 desiree http://www.unutilityelectric.com/?p=368 THE POWER IS ON! The newest Unutility Electric solar development powers up after it passes all inspections with flying colors. Having already created over a Megawatt Hour of clean solar energy in its first two days of operation, the massive array of 612 photovoltaic panels atop Anchor Self Storage in Mashpee Massachusetts is a success. Congratulations to the My Generation Energy team for speedy and seamless installation.

This system is latest example of local businesses and individuals coming together to solve our energy and environmental challenges. Unutility Electric is a model for progress in solar energy.

Unutility Electric, we are not the utility.